THE development of the Penang LRT Mutiara Line project today took another major step forward with the handover of the Sungai Nibong Festival Site (Tapak Pesta Pulau Pinang) by the Penang government to the Malaysia Rapid Transit Corp Sdn Bhd (MRT Corp).
Chief Minister Chow Kon Yeow and Transport Minister Anthony Loke Siew Fook witnessed the iconic handover between the state Financial Officer Datuk Zairi Mat Ali and MRT Corp chief executive officer Datuk Mohd Zarif Hashim at the site earlier today.

Chow, in his speech, said that the site handover will be completed in phases, starting with the Civil Main Contract 1 (CMC 1), followed by CMC 3, and carried out concurrently with the overall project planning.
“CMC 1 involves some 2.9 acres, while CMC 3 covers around 7 acres. The overall LRT development at the site is said to include 9.9 acres out of the total 20.1 acres of land at the festival site.
“The Sungai Nibong Festival Site area will be developed as part of an Integrated Transport Hub, which includes the construction of an LRT station and depot to support the overall operations of the Mutiara Line,” Chow said in his speech earlier.
Chow had previously said that the site, which will be used to develop an LRT station and a depot, will also include a Transit-Oriented Development (TOD).
Meanwhile, relatively, he reiterated that the project, which is funded by the Federal Government, and valued between RM16 billion and RM17 billion, will transform and improve the efficiency and quality of the public transport system in the state.
In a related development, through the Letter of Agreement that has been formalised, MRT Corp has agreed to comply with the prescribed methods for carrying out asset demolition works in a structured and transparent manner.
Chow said the agreed measures include the systematic management of residual value through the segregation of valuable materials such as iron and steel, as well as a transparent joint valuation process involving the Public Works Department (JKR), the Valuation and Property Services Department (JPPH) and MRT Corp.
“Asset disposal will only be carried out after written approval is obtained, with the recovered value to be finalised and returned to the state government,” he said.
He added that the strategic cooperation of all agencies involved has enabled the handover of the site, including the alignment area for the Sungai Dua Station (S11) and the construction of the LRT depot, to be realised according to schedule.
“The strategic collaboration among all agencies involved has made it possible for the site handover to be carried out as planned,” he remarked.
Meanwhile, Loke, during his speech, said the land handover marks a major milestone for the LRT project, noting the project has evolved from an island-focused alignment ending at KOMTAR to a wider network.
“When the project was refined and taken over by the Federal Government, it became clear that the alignment needed to be extended to connect the island with Butterworth and benefit a wider catchment area of passengers,” he said.
He also stressed that the extension to Penang Sentral was a strategic move to strengthen connectivity and reduce congestion.
“It is therefore essential that the LRT system operates efficiently and consistently along the entire route, making the construction of an additional depot a crucial requirement,” Loke emphasised.
On the depot site, he said the location near the midpoint of the line would improve operations and optimise limited land use.
“This approach allows more efficient use of limited urban land, in line with development models in major cities around the world,” he said, citing Hong Kong as an example of integrated depot and urban development.
He highlighted strong Federal–state cooperation and confirmed that land acquisition is progressing in stages, with physical works already visible.
“Pier construction has already started at several locations, and more than 16,000 public feedback responses have been received, with 99% supporting the alignment extension,” he added.
Loke said visible construction would boost confidence among the public and investors.
“By 2031, the Mutiara Line is expected to begin operations, benefiting public transport and the well-being of Penangites,” he further explained.
He added that the project carries national significance, as Klang Valley is currently the only area with a full LRT network.
“Once completed, Penang will become the only city outside the Klang Valley to have a full LRT system,” said a proud Loke.
Also present earlier were the Transport Ministry secretary-general Datuk Seri Jana Santhiran Muniayan, state Infrastructure, Transport and Digital Committee chairman Zairil Khir Johari, state Tourism and Creative Economy Committee chairman Wong Hon Wai, state Youth, Sports and Health Committee chairman Daniel Gooi Zi Sen, Social Development, Welfare and Non-Islamic Religious Affairs Committee chairman Lim Siew Khim, state Trade and National Unity Committee chairman Goh Choon Aik.
Story by Kevin Vimal
Pix by Law Suun Ting
Video by Siew Chia En